AUDITING 22 AUDITING Auditing Name of Student: Name of University: Part 1 - Understanding the Industry
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Holmes Institute Sydney
HA3032 Auditing (HA3032)
Added on 2020-02-24
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AUDITING 22 AUDITING Auditing Name of Student: Name of University: Author’s Note: Part 1- Understanding Nature of the entity 4 a) Business operations 4 b) Investments and investment activities 5 c) Financing and financing activities 5 d) Financial reporting practices 5 Part 2 - Understanding the Industry 6 a) Industry size 6 b) Industry growth 6 c) Industry supply chain 7 d) Major players 7 e) Market shares of Industry players 7 f) Critical success factors 8 g) Major threats
AUDITING 22 AUDITING Auditing Name of Student: Name of University: Part 1 - Understanding the Industry
Holmes Institute Sydney
HA3032 Auditing (HA3032)
Added on 2020-02-24
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Running head: AUDITING
Auditing
Name of Student:
Name of University:
Author’s Note:
Auditing
Name of Student:
Name of University:
Author’s Note:
1AUDITING
Table of Contents
Part 1- Understanding Nature of the entity......................................................................................4
a) Business operations..............................................................................................................4
b) Investments and investment activities...............................................................................5
c) Financing and financing activities........................................................................................5
d) Financial reporting practices.............................................................................................5
Part 2 - Understanding the Industry.................................................................................................6
a) Industry size..........................................................................................................................6
b) Industry growth.................................................................................................................6
c) Industry supply chain............................................................................................................7
d) Major players....................................................................................................................7
e) Market shares of Industry players.........................................................................................7
f) Critical success factors.........................................................................................................8
g) Major threats.....................................................................................................................8
Part 3 – Understanding the legal environment................................................................................8
Part 4 – Understanding external environmental factors..................................................................8
a) PEST analysis.......................................................................................................................8
b) SWOT analysis.................................................................................................................9
c) Porter’s five forces analysis................................................................................................10
d) Other external factors affecting the entity:.....................................................................10
Part 5 – Understand objectives, strategies and Assessing Business Risks....................................11
a) Industry developments:.......................................................................................................11
b) New products and services:.............................................................................................11
c) Expansion of the business:..................................................................................................11
d) New accounting requirements:........................................................................................11
e) Regulatory requirements:....................................................................................................11
f) Current and prospective financing requirements:...............................................................11
g) Use of IT:........................................................................................................................12
h) The effects of implementing a strategy:..........................................................................12
Part 6 – Performing Analytical Procedures to understand Entity’s Performance.........................12
Table of Contents
Part 1- Understanding Nature of the entity......................................................................................4
a) Business operations..............................................................................................................4
b) Investments and investment activities...............................................................................5
c) Financing and financing activities........................................................................................5
d) Financial reporting practices.............................................................................................5
Part 2 - Understanding the Industry.................................................................................................6
a) Industry size..........................................................................................................................6
b) Industry growth.................................................................................................................6
c) Industry supply chain............................................................................................................7
d) Major players....................................................................................................................7
e) Market shares of Industry players.........................................................................................7
f) Critical success factors.........................................................................................................8
g) Major threats.....................................................................................................................8
Part 3 – Understanding the legal environment................................................................................8
Part 4 – Understanding external environmental factors..................................................................8
a) PEST analysis.......................................................................................................................8
b) SWOT analysis.................................................................................................................9
c) Porter’s five forces analysis................................................................................................10
d) Other external factors affecting the entity:.....................................................................10
Part 5 – Understand objectives, strategies and Assessing Business Risks....................................11
a) Industry developments:.......................................................................................................11
b) New products and services:.............................................................................................11
c) Expansion of the business:..................................................................................................11
d) New accounting requirements:........................................................................................11
e) Regulatory requirements:....................................................................................................11
f) Current and prospective financing requirements:...............................................................11
g) Use of IT:........................................................................................................................12
h) The effects of implementing a strategy:..........................................................................12
Part 6 – Performing Analytical Procedures to understand Entity’s Performance.........................12
2AUDITING
Part 7 – Understand management and Governance.......................................................................16
a) Communication and enforcement of integrity and ethical values:.....................................16
b) Commitment to competence:..........................................................................................17
c) Participation by those charged with governance................................................................17
d) Management’s philosophy and operating style:..............................................................18
e) Organisational structure......................................................................................................18
f) Assignment of authority and responsibility........................................................................19
g) Human resource policies and practices:..........................................................................19
Conclusion.....................................................................................................................................19
References......................................................................................................................................22
Part 7 – Understand management and Governance.......................................................................16
a) Communication and enforcement of integrity and ethical values:.....................................16
b) Commitment to competence:..........................................................................................17
c) Participation by those charged with governance................................................................17
d) Management’s philosophy and operating style:..............................................................18
e) Organisational structure......................................................................................................18
f) Assignment of authority and responsibility........................................................................19
g) Human resource policies and practices:..........................................................................19
Conclusion.....................................................................................................................................19
References......................................................................................................................................22
3AUDITING
Introduction
The report is intended to highlight the various aspects of the business risk analysis for
Medibank Private Limited. Some of main aspects of the research report have been seen in terms
of the use of the various types of the entities which has been seen in understanding of Industry,
Regulatory and External Factors. Some of the other aspects of the report have shown
management structure governance and nature of entity. The study has further discussed on the
different types of the aspect for the business risks, strategies along with the company objectives.
The various types of the understanding of the nature of entity of the corporation have
been studied with the use of business operations, investment activities and the financial reporting
practices. The second part of the report has discussed on the industry growth, industry supply
chain, issues pertaining to the critical success factors and the market share of the industry
players. The third section of the report has been further seen to discuss on the understanding of
the legal environment. Some of the various types of the other aspects of the report have been
seen with the understanding of external environmental factors, corporate governance structure
and management. The main focus of the report has been further seen to be given on the
conduction of the analytical procedure fir understanding the performance of the entity. The latter
part of the study has shown significant amount of the focus which has been seen to be related to
the understanding of the organisation structure, philosophy and operating style (Baicker,
Mullainathan and Schwartzstein 2015).
Introduction
The report is intended to highlight the various aspects of the business risk analysis for
Medibank Private Limited. Some of main aspects of the research report have been seen in terms
of the use of the various types of the entities which has been seen in understanding of Industry,
Regulatory and External Factors. Some of the other aspects of the report have shown
management structure governance and nature of entity. The study has further discussed on the
different types of the aspect for the business risks, strategies along with the company objectives.
The various types of the understanding of the nature of entity of the corporation have
been studied with the use of business operations, investment activities and the financial reporting
practices. The second part of the report has discussed on the industry growth, industry supply
chain, issues pertaining to the critical success factors and the market share of the industry
players. The third section of the report has been further seen to discuss on the understanding of
the legal environment. Some of the various types of the other aspects of the report have been
seen with the understanding of external environmental factors, corporate governance structure
and management. The main focus of the report has been further seen to be given on the
conduction of the analytical procedure fir understanding the performance of the entity. The latter
part of the study has shown significant amount of the focus which has been seen to be related to
the understanding of the organisation structure, philosophy and operating style (Baicker,
Mullainathan and Schwartzstein 2015).
4AUDITING
Part 1- Understanding Nature of the entity
a) Business operations
Medibank Private Bank is identified to be one of the pioneers in providing private
health insurance in Australia. Medibank has been further seen to be delivering various
types of occupational health services, telephone and online health management programs
and various types of the initiative for health coaching programs in Australia (Loewenstein
et al. 2013).
b) Investments and investment activities
The main form of the investment activities has been further seen to be based on
the various types of the consideration discerned in form of investing in the community
programs. This has been seen to support the health of all the Australians. Some of these
investments have been further seen to be discerned in form of Growing Healthy Kids,
which has been able to support the local programs to promote child healthcare (Brennan,
Anikeeva and Teusner 2013).
c) Financing and financing activities
The main form of the Cash flows from financing activities has been discerned in
with the payment of dividends. The outstanding dividend paid by the company in 2016
has been discerned to be $ (283.7) million in 2016 and $ (238.8) million in 2015. Hence it
can be discerned that the investing activities for the companies has increased (Liu 2016).
d) Financial reporting practices
The preparation of the financial report has been prepared in accordance with the
“Australian Accounting Standards Board (AASB)”, “International Financial Reporting
Part 1- Understanding Nature of the entity
a) Business operations
Medibank Private Bank is identified to be one of the pioneers in providing private
health insurance in Australia. Medibank has been further seen to be delivering various
types of occupational health services, telephone and online health management programs
and various types of the initiative for health coaching programs in Australia (Loewenstein
et al. 2013).
b) Investments and investment activities
The main form of the investment activities has been further seen to be based on
the various types of the consideration discerned in form of investing in the community
programs. This has been seen to support the health of all the Australians. Some of these
investments have been further seen to be discerned in form of Growing Healthy Kids,
which has been able to support the local programs to promote child healthcare (Brennan,
Anikeeva and Teusner 2013).
c) Financing and financing activities
The main form of the Cash flows from financing activities has been discerned in
with the payment of dividends. The outstanding dividend paid by the company in 2016
has been discerned to be $ (283.7) million in 2016 and $ (238.8) million in 2015. Hence it
can be discerned that the investing activities for the companies has increased (Liu 2016).
d) Financial reporting practices
The preparation of the financial report has been prepared in accordance with the
“Australian Accounting Standards Board (AASB)”, “International Financial Reporting
5AUDITING
Standards (IFRS)’, this has been further seen to be issued by the “International Accounting
Standards Board (IASB)” and the “Corporations Act 2001”.
Part 2 - Understanding the Industry
a) Industry size
Private health insurance in Australia is regulated by The “Private Health
Insurance Administration Council (PHIAC)”. This has been further identified that more
than 13.2 million Australians are covered under private health insurance. This has been
able to access 46500 health insurance products provided across 34 registered private
health insurers (Willis, Reynolds and Keleher 2016).
b) Industry growth
The main growth of the private health insurance has been seen with those
companies which are open not for profit. The next best growth of the company has been
further seen to be discerned with service providers who are restricted for profit.
Figure: Number of health insurers 1971-2015
Standards (IFRS)’, this has been further seen to be issued by the “International Accounting
Standards Board (IASB)” and the “Corporations Act 2001”.
Part 2 - Understanding the Industry
a) Industry size
Private health insurance in Australia is regulated by The “Private Health
Insurance Administration Council (PHIAC)”. This has been further identified that more
than 13.2 million Australians are covered under private health insurance. This has been
able to access 46500 health insurance products provided across 34 registered private
health insurers (Willis, Reynolds and Keleher 2016).
b) Industry growth
The main growth of the private health insurance has been seen with those
companies which are open not for profit. The next best growth of the company has been
further seen to be discerned with service providers who are restricted for profit.
Figure: Number of health insurers 1971-2015
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